Stop Loss

A stop loss (a.k.a. stop
loss order) is used when day trading to limit the potential loss
should a trader's position "go wrong". If you don't bother
with stop losses while day trading, you won't be day trading for
long, as catastrophic events that can wipe out a 'naked' position
occur with ridiculous regularity. A stop loss is essentially a day
trading "insurance policy" to limit the downside, should
you "get it wrong". Beginning day traders should ALWAYS
use a real physical stop - only advanced traders should even consider
'mental' stops. Where to place a stop is rightly regarded as the
most difficult lesson to learn in day trading, and this is why the
is so useful - many of the levels also double as stops.

The SureFireThing Camarilla Equation for use in day trading is available online from these
websites: